Apparent school retention rates for Aboriginal and Torres Strait Islander full-time students from Year 7/8 to Year 12 increased from 36% in 2001 to 49% in 2011.

Nationally, the proportion of Aboriginal and Torres Strait Islander people aged 15 years and over completing Year 12 increased from 18% in 2002 to 22% in 2008. The rate of Year 12 completion has also improved in all states and territories.

More Aboriginal and Torres Strait Islander people are completing non-school qualifications, 40% of 25–64 year olds in 2008, up from 32% in 2002.

More Aboriginal and Torres Strait Islander young people were fully engaged in work and/or study in 2008. Just over half (54%) of Aboriginal and Torres Strait Islander young people aged 15–24 years were either working full-time, studying full-time, or both working and studying; up from 47% in 2002.

In 2008, 59% of Aboriginal and Torres Strait Islander people aged 15–34 years who had completed Year 12 reported excellent/very good self-assessed health compared with 49% of those who had left school early (Year 9 or below). For people aged 35 years and over, the rates were 43% and 25% respectively.

The likelihood of smoking also decreased with higher levels of schooling, 34% of Aboriginal and Torres Strait Islander people aged 15–34 years who had completed Year 12 were current daily smokers compared with 68% of those who had left school early. For people aged 35 years and over the rates were 36% and 48% respectively.

Education is considered a key factor in improving health and wellbeing. It is one of the crucial contributors to the formation of human capital (Endnote 1). Higher levels of educational attainment aregenerally considered to have a positive association with health as they help to improve health literacy(Endnote 2). Educational attainment is also associated with better employment prospects and higher income which, in turn, may serve to increase access to health-related services and products. Being employed also enhances self-esteem, increases the opportunities for self-development and reduces social alienation (seeAdult Health topicfor more information on how socioeconomic status is related tohealth) (Endnote 3).